New Delhi, June 14, 2023: Microfinance Institutions Network (MFIN), the microfinance industry association and an RBI-recognized self-regulatory organization, today released the 45th issue of its Micrometer report for the financial year ending March 31, 2023, i.e., Q4 FY 22-23.
Speaking on the 45th Issue of Micrometer for Q4 FY 22-23, Mr. Devesh Sachdev, Chairperson – MFIN said, “Microfinance industry reached INR 3,48,339 Cr at the end of FY 22-23 with a YoY growth of 22.0%. During FY 22-23, NBFC-MFIs emerged as the largest provider of Microfinance in India with their share increasing to 39.7% at the end of FY 22-23 from 35.2%. Share of East and North East fell continuously over the last FY, reaching 34.9% from 37.7% as on March 31, 2022. South and North region gained more than 1% each. Bihar has emerged as the largest state in terms of portfolio outstanding replacing Tamil Nadu. New loans disbursed after COVID have performed much better than loans originated before COVID, as shown by a sharp decline in the PAR 1-60 days bucket from 4.25% on March 31, 2022, to 1.57% on March 31, 2023.
March 31, 2023, marks the completion of the first year of the Regulatory Framework for Microfinance Loans, 2022 – issued by RBI. This was a significant change, and the industry has reacted positively, as evidenced by the increase in portfolio size and quality.”